14 Van Leasing Myths Debunked - Find Out the Common Misconceptions
Van leasing is a fantastic way to start growing your business quickly. Make sure the common misconceptions don’t affect your decision. Let’s debunk some van leasing myths!
1. Van Leasing is more expensive than buying a van
Not true! In fact, leasing a van can be sometimes less expensive compared to buying a new van. As you don’t own the van at the end of the leasing agreement, you are simply paying monthly rental payments. These are often lower compared to if you took a loan to buy a van because your loan would cover the full value.
The advance rental payment is also often lower compared to a deposit when buying a van. While leasing your vehicle, you also don’t have to worry about depreciation costs.
2. You must pay a big van leasing advance rental
The advance rental payment is lower than if you were to pay a deposit to buy a van. This agreement is more flexible and affordable, making it ideal for small or startup businesses.
The initial advance rental payment can be as little as three months rentals or as many as 12. It’s up to you. The larger your advance rental payment, the lower your monthly rentals.
3. Only large businesses can lease a van
This is not true. Historically, businesses with large fleets have used van leasing most. These days anyone can enter into an agreement no matter if it’s for small or large business. It's a practical choice especially for self-employed individuals who don’t have the capital to purchase a new van.
4. You can’t customise a leased van
It might surprise you that you can customise your leased van. However, you are not allowed to make significant changes. Smaller adjustments such as accessories including a towbar, racking or livery are usually allowed. We recommend consulting your lender before making any modifications.
5. You need an impeccable credit rating to lease a van
It’s always beneficial to have a good credit score when starting a lease agreement but it’s not required. Other factors such as your income and credit history are also considered when reviewing your application. If you believe this may be an obstacle to starting a lease get in touch with our specialists. We are happy to help you find the right finance option for your needs.
6. Leasing a van is waste of money
Leasing a van is one of the best ways to get started to grow your business. It also allows self-employed individuals to drive a new van, providing a professional image.
You simply pay an advance rental and continue to pay fixed monthly rentals. At the end, you return the van and are free to take on a new lease.
Van leasing offers flexibility and makes budgeting easier. And you get to drive a new van every few years!
7. There are always extra fees at the end of the contract
If it looks like you’re going to exceed your annual mileage restriction, get in touch with your lender. Adding extra mileage to your contract can sometimes be negotiated. This also prevents you from receiving an unwelcomed bill at the end.
To avoid exceeding your van mileage limit, it's good to review your driving before taking on the lease. You don’t want to underestimate your mileage and then end up paying more later.
8. Van leasing is complicated
Untrue. Leasing a van is quick and easy. And our skilled experts are on hand to help you during the process. Simply follow the steps below:
Step 1. Find your perfect van.
Step 2. Request a quote and apply for finance.
Step 3. Complete your order and wait for your van to arrive.
Get started today and find your next new van.
9. You are expected to buy the van at the end of the lease
This is incorrect. When you lease a van, you rent it for a set period. At the end of the agreement, you either hand it back over to the lender or you sell it to cover the final balloon payment.
10. Leasing a van is not flexible and you are stuck with a contract for years
Quite the opposite. Leasing a van is a highly flexible way to get a new van. You can also choose the length of the contract based on what suits your needs, usually between two to five years. You choose your annual mileage and your initial rental payment.
If you need to get out of the contract, you must pay a settlement fee. However, it’s often not cost effective. If you need to terminate the contract early, contact your lender to request a settlement figure.
11. Leased vans need special insurance and breakdown cover
Wrong again! You do need comprehensive insurance for your van, but it doesn’t need to be special. This is because the lender wants to make sure you are covered in case of an accident.
One of the benefits of van leasing is that they often come with a manufacturer warranty. It also usually includes breakdown cover, so you’re well looked-after.
12. Only I can drive a leased van
A lot of people think that only one person can drive a leased van. On the contrary, as long as other drivers have the correct insurance, they can drive the vehicle.
13. Electric vans can't be leased
This is a huge misconception. Similar to any other van, you can lease an electric van.
Plus, with electric van you avoid the UK Clean Air Zones (CAZs) charges. In response to the Government’s Road to Zero plan, cities have started charging vehicles which do not meet their emission standards.
14. The leasing company can track my van
No, they can’t. When you take on a van lease, you can be rest assured that there aren’t secret tracking devices in your van.
Now that you have learned more about van leasing, it’s time to find your next van. If you still have questions about van leasing, don’t hesitate to get in touch with us. Our friendly team is happy to help you out.